Minutes of Board Meeting November 7, 2000

VIRGINIA CITY HIGHLANDS PROPERTY OWNERS’ ASSOCIATION

(VCHPOA)

Special Meeting Minutes

November 7, 2000

PRESENT: Board President, Jim Watson. Members: Richard Bateson, Randy Fruzza Kelly Morris, Joel Smith. Property owners: Keith and Nancy Judson, Gary Brownwell, and Virginia Smith

CALL TO ORDER

A quorum being present, President Jim Watson called a special meeting of the Board of Directors of the Virginia City Highlands Property Owners’ Association (VCHPOA) to order at 7:07 p.m. The meeting was held at the residence of Joel Smith to discuss the following subjects prior to the regularly scheduled meeting to be held November 14, 2000:

The purpose of the meeting was to assure each Board member was knowledgeable of these topics and prepared for discussion at the next Board meeting.

MODIFIED COLLECTION AGREEMENT, LAW OFFICES OF JAY HAMPTON & ASSOCIATES

Each Board Member received a copy of the Modified Collection Agreement prior to the meeting and had been asked to read and suggest revisions as needed.

Paragraph I. General Terms 3. Randy Fruzza recommended changing "…for the delinquent homeowners(s)." to "…for the delinquent property owners."

Paragraph II. Conditions for "No Fees and No Costs" Program 1. Randy recommended "…delinquent homeowner…" be changed to "…delinquent property owner…."

Paragraph II. 2. Randy recommended a change from "Association shall responsible…" to "Association shall be responsible…."

The Board realized large legal fees could be incurred as a result of the number of delinquent annual assessments. A lengthy discussion ensued on how to limit the exposure that the Association could incur for the outstanding fees, costs, and contingencies in the event the Assessment Collection Agreement is terminated without cause. The following was recommended:

Paragraph II. 2.a. Delete 2.a. as written. Replace with:

If the Association cancels the Assessment Collection Agreement without cause, the Association shall pay all outstanding Attorney’s fees and costs up to a maximum of $5,000. Said limit can be increased by VCHPOA Board approval. Any outstanding attorney fees and costs beyond said limit, would be reimbursed on a lot-by-lot basis upon subsequent collection by the VCHPOA or its designated representative for that particular lot. Reimbursement of attorney fees and cost shall be limited to collections in excess of funds owed the Association for that particular lot.

Paragraph II.2.b. Delete 2.b. as written. Replace with:

All communications with the delinquent property owner concerning his or her account shall be exclusively through Attorney. If the Association Officers and/or Board of Directors interferes with and/or halts the collection process, then the Association shall pay all outstanding Attorney’s fees and costs for that particular lot.

Kelly Morris will contact the Attorney prior to the November 14 meeting and return comment to the Board. Virginia Smith will call the references provided to assess the relationship between other associations and this Attorney. A report of findings will be given to the Board.

NEWSLETTER CONTENTS

The newsletter is expected to be two sheets (4 pages) including ads. Brevity is desired to increase readability. Cost effective printing and mailing options are being investigated. Content will include the following:

VCHPOA WEBSITE

Keith Judson presented a draft of the VCHPOA Website contents for review. Kelly moved that the website be approved with a few changes as discussed. Joel seconded. Said motion duly passed with all members voting aye.

MAILBOX ENCLOSURE

Jim Watson, Kelly Morris and Joel Smith attended the Highlands Ranches Board meeting on 31 October to better understand the mailbox enclosure cost overruns. Originally the cost was budgeted at $5,800, plus 20% for contingencies, for the two buildings with 60% payable by the VCHPOA. During the March 14, 2000 VCHPOA Board meeting, the Board authorized payment up to $4,000. To date VCHPOA has paid $2,400. The Board will authorize a payment for the difference of $1,600 at the November 14 meeting.

The current estimate for both buildings is $11,000. The overrun is attributed to several factors, including but not limited to, 1) less contribution of materials and labor than anticipated, 2) increased lumber cost and 3) more concrete than planned due to the rocky substrate.

The Board will consider increasing the VCHPOA portion of the cost to a total of $6,600 (60% of $11,000) upon receipt and review of documented cost from the Highland Ranches.

ADJOURNMENT

All items on the agenda for November 7, 2000 had been addressed. At 9:30 p.m. Joel moved to adjourn, Jim seconded, all approved.

Joel W. Smith, Secretary

Document attached: